The Securities and Exchange Commission (SEC) says it is reviewing the Securities Industry Law to bring private equity fund managers and venture capital funds under its supervision to ensure transparency in the sector.
Commodity exchanges, credit rating agencies, hedge funds, and nominee account operators are other entities expected to be brought under the regulation of SEC upon completion of the review process and approval.
“The law is being amended to bring it in line with international standards to enable SEC become an International Organisation of Securities Commissions (IOSCO) signatory ‘A’ country,” Adu Anane Antwi, SEC Director-General, said.
“The amendment of this law is coming with the introduction of new operators like commodity exchanges, credit rating agencies, hedge funds, nominee account operators, private equity funds and venture capital funds, which will be brought under the regulation of SEC. We believe when these funds are properly regulated, it will create the necessary transparency.”
Mr. Anane Antwi was speaking at the first Capital Market Conference organised by the Commission in Accra. The event was held under the theme “The Capital Market: A key to Economic Growth and Development”.
In December 2000, an Act to amend some provisions of the Securities Industry Law 1993, (PNDCL 333) was passed. This Act, Act 590, made fuller provisions for the operation and regulation of Unit Trusts and Mutual Funds.
It also provided for the settlement of disputes arising under the law, consequential amendments arising from provisions of the Constitution, and related purposes.
The SEC is responsible for licencing and regulating all capital market operators such as investment advisors, dealers and their representatives, as well as the Ghana Stock Exchange.
The Commission also provides companies and the general public with guidance in interpreting provisions of the securities laws and regulations on the listing of securities, in addition to handling investor complaints.
Source: Business & Financial Times
